Ørsted Could Acquire Eversource's Half In Sunrise Wind Project Off Long Island

LONG ISLAND, NY — The Danish wind farm developer Ørsted will acquire its Sunrise Wind partner Eversource’s 50 percent share of the project, officials announced Wednesday in a news release.

It's not a done deal yet, though.

The acquisition, however, is subject to the successful award of Sunrise Wind in the state's ongoing solicitation for offshore wind capacity, the completion of Offshore Wind Renewable Energy Certificates, contract with the state's energy agency, New York State Energy Research and Development Authority, the finalization of acquisition agreements, receipt of construction and operations plan, and relevant regulatory approvals.

If Sunrise Wind does not succeed in the solicitation, the existing OREC contract for Sunrise Wind will be canceled under the state’s requirements, and Ørsted and Eversource’s joint venture for Sunrise Wind will remain in place, according to officials.

Under that scenario, the venture's next steps will be evaluated, and if the project is provisionally awarded, a new contract will be negotiated with the state's energy authority under the updated terms of the current solicitation, officials said.

If awarded, Sunrise Wind is expected to be completed in 2026 and will help the state achieve its goal of reaching 70 percent renewable energy by 2030, according to officials.

The project's design has been reviewed and accepted by all relevant state agencies, and it has secured all major supplier and project labor agreements to start construction shortly after an award, officials said.

The final federal permits required for the project are expected this summer, according to officials.

An electric cable running from Sunrise Wind Farm to Smith Point County Park in Shirley was approved in November 2022 by the New York State Public Service Commission.

Sunrise Wind will connect to the New York electricity grid through a 100-mile submarine transmission cable from offshore wind turbines, over 30 miles east of Montauk Point, to a grid connection at the Holbrook and West-Bus Substation.

The underground cable would make landfall beneath Smith Point and then would follow a route to Smith Point Marina, then William Floyd Parkway, Surrey Circle, Mastic Boulevard, Francine Place, Revilo Avenue, Victory Avenue, Horseblock Road, the Long Island Expressway South Service Road, Waverly Avenue, Long Island Avenue, and finally Union Avenue.

Ørsted Group Executive Vice President and CEO of Region Americas David Hardy said that after "a thorough risk review of the company's United States portfolio," staffers are comfortable with taking full ownership of Sunrise Wind if the project is awarded in New York.""This transaction is a value-accretive opportunity for Ørsted and the best path forward for the project," he said.

Hardy went on to say that Sunrise Wind will be the company's third offshore wind farm off the northeast's coast, after South Fork and Revolution Wind, which are already under construction.

"The northeast is an increasing priority for Ørsted, including these projects, port assets, a trained workforce, and supply chain partners," he said. "We’re building a future offshore wind hub that is strategic for Sunrise Wind, if awarded, as well as for upcoming solicitations in the region, helping us to differentiate and de-risk potential future bids and projects.”

Chief Executive Officer and President of Eversource Energy Chief Executive Officer and President Joe Nolan said the company is proud of the work its already accomplished for Sunrise Wind and staffers "look forward to continuing our leadership position building onshore interconnection systems for offshore wind projects in the Northeast.”